Microsoft Generating Significant Momentum with Dynamics 365 ERP
Roughly two years after its initial launch as a native cloud service, Microsoft’s Dynamics 365 ERP software suite seems to be finding its stride. At the company’s annual Inspire conference, Microsoft reported that there are now roughly 100,000 monthly active users on the Dynamics 365 for Finance and Operations (D365FO) cloud ERP suite. Microsoft also reported that they, with the assistance of their partner channel, have grown the customer base to over 2,100 customers after year two, with over 600 of these clients using the system in production.
According to Muhammad Alam, Microsoft’s General Manager for D365FO, the D365FO customer base has grown by 3X over the last year alone, from 650 customers to over 2,100.
Of the 2,100+ D365FO customers, approximately two thirds are "net new logos" for the product. This is a significant percentage, which appears to signal a different strategy taken by Microsoft compared to the one employed by other large software vendors like SAP and Oracle. These cloud ERP competitors appear to be boosting their customer statistics by focusing more heavily on license transitions from existing on-premise customers, rather than net-new clients.
Microsoft estimates that the customer base of over 100,000 monthly active users actually translates to a total of roughly 500,000 user accounts that have been created by customers. The number of monthly active users (MAU) is an important tracking metric for Microsoft.
The 600+ customers that are using D365FO in production span multiple geographies and use the system to manage a variety of business process workloads. About 100 customers went live in just the last four weeks alone, according to Alam. Microsoft is encouraging its partners to further accelerate these go-lives by shortening implementation timeframes and encouraging faster incremental launches rather than traditional big-bang go-lives.
Microsoft also revealed that approximately 50 live customers are using CDS (Common Data Service) driven connected business processes that span D365FO and other Dynamics 365 applications for enabling integrated processes such as "order to cash" and "field service to operations". Microsoft has more pre-developed flows in the works, including integration from D365 for PSA to D365FO and integration from D365 for Talent to D365FO.
By all accounts, this rapid growth of the D365FO customer base has outpaced even Microsoft’s most optimistic projections. As Microsoft continues to rapidly bring new innovations to market that push the platform further ahead of most of its competitors, we can only expect this growth to continue.
About the Author
Andy Yeomans is Director of Business Development for sa.global, where his role is to help project-driven organizations evaluate and select ERP software systems to better manage their finances, projects, clients, and resources. Andy was instrumental in developing the organization's Microsoft Dynamics 365 industry solutions and practice area for the AE & Environmental industry. Andy has over 17 years of ERP experience and has helped dozens of AE & Environmental firms evaluate, select, and implement ERP software systems for their business.